Riyadh-based Bank Aljazira recorded net profits of SAR 374.9 million (USD 99.9 million) in the first quarter of 2022 (1Q 2022), seeing a 17% increase year-on-year (YoY) compared to SAR 321.9 million (USD 85.8 million) in the first quarter of 2021 (1Q 2021) and a 64% quarterly rise from SAR 229 million (USD 61 million) in the fourth quarter of 2021 (4Q 2021), according to a bourse filing on the 26th of April 2022.  Why it Matters? The positive performance is attributed to net impairment charges for financing and other financial assets falling by 38% and operating income witne...

The Kingdom of Saudi Arabia’s (KSA) Islamic financial industry currently has total assets of nearly SAR 3 trillion (USD 799.8 billion), representing 28% of the total global Islamic financial assets, according to the Deputy Governor for Research and International Affairs at the Saudi Central Bank (SAMA), Fahad Abdullah Al-Dossari, in a seminar on the 25th of April 2022. Why it Matters?  The global Islamic finance industry has expanded today, seeing its assets approximating USD 2.7 trillion and achieving annual growth of more than 10%. The Islamic banking sector makes up...

Dubai-based Dar Al Takaful (DAT) and Abu Dhabi-based Watania, have voted in favour of a merger that will create the largest Takaful provider in the United Arab Emirates (UAE), by market share, as per a statement from the entities on the 26th of April 2022. The proposal for the merger has been approved by 100% of DAT shareholders and 99.9% of Watania shareholders at both firms' Annual General Meetings. Why it Matters?  The merger is expected to boost and develop the UAE's fragmented Takaful market, unlocking value for all stakeholders, through significant cost and revenue syn...

Pakistan-based Meezan Bank Limited (Meezan Bank) has announced its financial results for the first quarter of 2022 (1Q 2022), in a statement made to the Pakistan Stock Exchange (PSX) on the 25th of April 2022, recording profit growth of 51% year-on-year (YoY) to reach PKR 9.24 billion (USD 50 million). Why it Matters?  The positive profit result is attributed to a higher net spread which experienced a 43% YoY growth to reach PKR 21.46 billion (USD 115 million), amid profit earned in Islamic financing. Islamic financing and related assets investments and placements profit ros...

Abu Dhabi Islamic Bank (ADIB) has announced that it has signed an Islamic financing deal worth AED 500 million (USD 136 million) to fund the first phase of development for Jubail Island, marking the project’s first Shariah-based leasing (Ijarah) agreement. Why it Matters?  Located between Saadiyat and Yas islands in Abu Dhabi, United Arab Emirates (UAE), Jubail Island is worth AED 5 billion (USD 1.4 billion) and will have six residential village estates covering more than 400 hectares, anticipated to house 10,000 residents in the next four years. Phase one of the proje...

ESG engagement has become a key element of responsible investment for equity investors, but has developed much slower among fixed income investorsEfforts to boost engagement by fixed income investors could affect where inflows of investors direct their funding in Islamic capital marketsSukuk issuers receptivity to fixed income investor engagement could help differentiate Sukuk from sector and regional peer issuers who only raise funding with conventional bonds Sukuk markets have grown in their diversity to include green, social, transition, sustainability- and Sustainable Development...

Saudi Electricity Company (SEC) has announced that it intends to fully redeem its SAR 5.7 billion (USD 1.52 billion) local Sukuk, due on the 10th of May 2022.  Why it Matters?  The Sukuk, issued on the 10th of May 2010 and listed on the Saudi Stock Exchange (Tadawul), saw a total number of 573,069 redeemed notes and had a SAR 10,000 (USD 2666) nominal value upon redemption. Details  Trading of the Sukuk will be suspended by Tadawul starting from the 26th of April 2022 for its delisting process from the market to begin, as per the company’s desire fo...

Sharjah Islamic Bank (SIB) recorded a net profit of AED 187 million (USD 51 million) for the first quarter of 2022 (1Q 2022) compared to AED 164.2 million (USD 44.7 million) for the first quarter of 2021 (1Q 2021), an increase of 13.9% while its operating profit before provisions saw a 17.1% increase to AED 248.5 million (USD 67.7 million). Why it Matters? The increase in overall revenue is due to the United Arab Emirates’s (UAE) economic recovery amid global inflationary pressures, the bank's customer-centric approach, and a number of new high-profit-oriented customer prod...

Malaysia-based RHB Islamic Bank, RHB Bank Berhad’s wholly-owned subsidiary, announced the issuance of Subordinated Sukuk Murabahah of MYR 250 million (USD 58 million) in nominal value, as part of its MYR 5 billion (USD 1.2 billion) Subordinated Sukuk Murabahah Programme, in a filing with Bursa Malaysia on the 21st of April 2022. Why it Matters?  The Sukuk will have a 10-years term and are non-redeemable for five years. It will also have a fixed profit rate of 4.06% per annum, paid every six months throughout the entire tenure. The proceeds from the Sukuk will be used f...

Dubai-based Emirates Islamic announced on the 21st of April 2022 its results for the first quarter of 2022 (1Q 2022), recording a net profit increase of 62% year-on-year (YoY) to AED 342 million (USD 93 million), owing to income growth of 14% and a 72% improvement in provisions. Why it Matters? The positive performance recorded by the bank comes on the back of strong operating performance on higher income coupled with a reduction in provisions along with strong capital and liquidity and a healthy deposit mix which allowed the Bank to support customers. In line with the greater in...